WallStSmart

Globalfoundries Inc (GFS)vsTaiwan Semiconductor Manufacturing (TSM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Taiwan Semiconductor Manufacturing generates 63902% more annual revenue ($4.44T vs $6.94B). TSM leads profitability with a 49.9% profit margin vs 10.3%. GFS appears more attractively valued with a PEG of 0.72. TSM earns a higher WallStSmart Score of 86/100 (A).

GFS

Buy

54

out of 100

Grade: C-

Growth: 3.3Profit: 5.0Value: 4.7Quality: 7.0
Piotroski: 4/9Altman Z: 1.22

TSM

Exceptional Buy

86

out of 100

Grade: A

Growth: 9.3Profit: 10.0Value: 7.3Quality: 9.0
Piotroski: 6/9Altman Z: 3.85
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GFSSignificantly Overvalued (-37.7%)

Margin of Safety

-37.7%

Fair Value

$35.27

Current Price

$47.95

$12.68 premium

UndervaluedFair: $35.27Overvalued
TSMUndervalued (+51.0%)

Margin of Safety

+51.0%

Fair Value

$886.73

Current Price

$445.14

$441.59 discount

UndervaluedFair: $886.73Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GFS3 strengths · Avg: 8.3/10
Debt/EquityHealth
0.149/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.728/10

Growing faster than its price suggests

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

TSM6 strengths · Avg: 10.0/10
Market CapQuality
$2.25T10/10

Mega-cap, among the largest globally

Return on EquityProfitability
34.9%10/10

Every $100 of equity generates 35 in profit

Profit MarginProfitability
49.9%10/10

Keeps 50 of every $100 in revenue as profit

Operating MarginProfitability
60.3%10/10

Strong operational efficiency at 60.3%

Revenue GrowthGrowth
36.0%10/10

Revenue surging 36.0% year-over-year

EPS GrowthGrowth
77.4%10/10

Earnings expanding 77.4% YoY

Areas to Watch

GFS4 concerns · Avg: 2.8/10
P/E RatioValuation
37.4x4/10

Premium valuation, high expectations priced in

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

EPS GrowthGrowth
-26.8%2/10

Earnings declined 26.8%

Free Cash FlowQuality
$-6.00M2/10

Negative free cash flow — burning cash

TSM2 concerns · Avg: 3.0/10
P/E RatioValuation
32.5x4/10

Premium valuation, high expectations priced in

Price/BookValuation
91.2x2/10

Trading at 91.2x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GFS

The strongest argument for GFS centers on Debt/Equity, PEG Ratio, Price/Book. PEG of 0.72 suggests the stock is reasonably priced for its growth.

Bull Case : TSM

The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 49.9% and operating margin at 60.3%. Revenue growth of 36.0% demonstrates continued momentum.

Bear Case : GFS

The primary concerns for GFS are P/E Ratio, Return on Equity, EPS Growth.

Bear Case : TSM

The primary concerns for TSM are P/E Ratio, Price/Book.

Key Dynamics to Monitor

GFS profiles as a value stock while TSM is a growth play — different risk/reward profiles.

GFS carries more volatility with a beta of 1.77 — expect wider price swings.

TSM is growing revenue faster at 36.0% — sustainability is the question.

TSM generates stronger free cash flow (287.4B), providing more financial flexibility.

Bottom Line

TSM scores higher overall (86/100 vs 54/100), backed by strong 49.9% margins and 36.0% revenue growth. Both earn "Exceptional Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Globalfoundries Inc

TECHNOLOGY · SEMICONDUCTORS · USA

GLOBALFOUNDRIES Inc. is a global semiconductor foundry. The company is headquartered in Malta, New York.

Taiwan Semiconductor Manufacturing

TECHNOLOGY · SEMICONDUCTORS · USA

Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.

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